FSB Wales calls for business support restoration to unlock SME potential
FSB Wales calls for business support restoration to unlock SME potential
Wales’s largest business group is calling for a major uplift in business support funding and services to help the country’s small firms scale up and boost productivity. According to a new report by the Federation of Small Businesses (FSB) Wales, two-thirds of SMEs want to grow and half are focused on becoming more productive, showcasing the sector’s vital role in realising the Welsh Government’s wider economic ambitions.
Published today (17 June), the “Cultivating Small Business Growth” report reveals strong recognition of support services like Business Wales, which is praised for its “one-stop shop” approach to simplifying business advice and resources. More than half of the businesses that accessed support via Business Wales reported a positive experience.
However, the report also warns that current funding levels are falling short. Since the UK’s exit from the European Union, financial support for business services has declined significantly, raising concerns about the future of key programmes.
The Welsh Government accepts leaving the European Union has had a negative effect on businesses in Wales.
FSB is now calling for urgent action to restore business support funding to pre-Brexit levels, alongside a package of reforms aimed at improving accessibility, accountability, and tailored guidance for ambitious small firms.
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John Hurst, Chair of FSB Wales, said: “Effective business support, including access to advice, training, and funding, plays a crucial role in empowering people to start and scale their businesses. Our research shows that where support works, businesses thrive.
“To fully unlock Wales’s growth potential, we need to see funding restored and delivery improved. From more consistent services to better use of private expertise, these reforms would help small firms become the engine of our economy.”
The report’s recommendations include a voucher system to help SMEs access private sector expertise, increased face-to-face engagement with support services, and dedicated account managers for high-potential businesses. It also proposes the creation of a Business Growth Board to oversee and evaluate the effectiveness of the support landscape.
Entrepreneur Jane Wallace-Jones, Founder and CEO of Swansea-based Something Different Wholesale, backed the findings.
She said: “Business Wales’s Accelerated Growth Programme and the Development Bank of Wales have been instrumental in helping us manage our growth and invest in sustainability.
“This report is right to emphasise the importance of access to local expertise and consistent, targeted support. Welsh entrepreneurs have so much to offer—what we need is a system that helps us innovate, grow, and compete.”
A Welsh Government spokesperson said: “There is no denying the fact that leaving the European Union has been damaging to business. Increased bureaucracy, challenges to exporting, and the loss of European funding have all had an impact.
“Nonetheless, we are committed to helping small businesses unlock opportunities through support to innovate and access finance, and support to access new markets.
“Our Business Wales service continues to provide SMEs with a wide range of information, advice and guidance to help entrepreneurs develop, grow and scale their business, connecting them to wider support across the Welsh ecosystem.”
Key Recommendations from the FSB Wales Report:
- Restore funding to pre-EU-exit levels and commit to multi-year budgets, leveraging new local growth funding announced in the 2025 Spending Review.
- Enhance user experience by increasing face-to-face support, response targets, and introducing ‘case officers’ for sustained business guidance.
- Enable access to private expertise through a new voucher scheme developed by Business Wales.
- Improve accountability with a new Business Growth Board to monitor delivery and outreach, and ensure support services remain dynamic.
- Target the ‘missing middle’ by allocating resources to SMEs with scale-up potential through tailored mentorship, growth finance, and innovation support.
As the Welsh economy faces the twin challenges of recovery and long-term competitiveness, the FSB is urging policymakers to view SME support not as a cost, but as a strategic investment in the nation’s future prosperity.
